Shell in deal with PetroChina for carbon-neutral LNG trade
SHANGHAI, July 14, 2021 – Shell has signed a five-year contract with PetroChina to supply LNG cargoes using carbon offsets to compensate for greenhouse emissions, the super-major announced on Monday.
Under the agreement, all carbon emissions generated for each individual cargo will be offset by lowering emissions across the LNG value chain and emission reduction projects. The amount of LNG to be delivered under the deal has not been disclosed. The companies claim it is the world’s first carbon-neutral trade deal for LNG.
Shell says its offsets will come through nature-based emissions reductions projects, such as reforestation.
“Since delivering the world’s first carbon-neutral LNG cargoes in 2019, we have collaborated with producers and buyers across the globe for 13 other carbon-neutral LNG cargoes,” said Steve Hill, executive vice-president for Shell Energy.